Vice President Kamala Harris Unveils Tax Plans for Small Businesses and the Wealthy

Introduction

Vice President Kamala Harris provided additional insights into her tax plans on the campaign trail this week. During a speech in New Hampshire, the Democratic presidential candidate laid out plans to give tax breaks to small businesses and clarified her position on long-term capital gains taxes. She also reiterated her support for a billionaire minimum tax.

Plans To Give Tax Breaks To Small Businesses

Harris outlined a plan to allow new businesses to deduct up to $50,000 in start-up costs. Currently, Internal Revenue Service rules show start-ups can generally deduct far less—up to $5,000 in start-up costs and up to $5,000 in organizational costs.

Harris’ proposal to support small businesses also included plans to help existing small businesses by providing more low- and no-interest loans to those wanting to expand. Her plan will also ease regulations and simplify taxes by creating a standard deduction similar to how individual taxes are typically filed.

Taxing Millionaires and Billionaires

Harris also said she supports increased tax rates for millionaires and billionaires, a topic her predecessor, President Joe Biden, also campaigned on.

Harris outlined a plan to increase the tax rate on long-term capital gains for those who make $1 million or more to 28%. Currently, the highest capital gains rate is 20% and applies to consumers who make around $500,000 a year.

This separates her campaign from Biden’s—he proposed a tax rate of 39.6% for those who make $1 million or more.

Recently, Harris has been criticized for backing Biden’s proposed “billionaire tax.” This would apply a 25% minimum tax on the unrealized gains of people who own $100 million in assets or more. Critics, such as the Libertarian Cato Institute, say that the wealth tax would be “economically destructive.”

While she didn’t get into specific numbers, she did mention she would “support a billionaire minimum tax” to “ensure that the wealthy and big corporations pay their fair share.” She did, however, note that as president, she would push to “tax capital gains at a rate that rewards investment in America’s innovators, founders, and small businesses.”

Conclusion

Vice President Kamala Harris’s tax plans aim to provide support for small businesses and increase taxes on the wealthy. Her proposal to allow new businesses to deduct up to $50,000 in start-up costs and provide more low- and no-interest loans to existing small businesses demonstrates her commitment to fostering entrepreneurship and economic growth.

Additionally, Harris’s plan to increase the tax rate on long-term capital gains for individuals making $1 million or more to 28% aligns with her goal of ensuring that the wealthy contribute their fair share. While her proposed tax rate is lower than President Biden’s, it still represents a significant increase from the current rate.

Critics have raised concerns about Harris’s support for a billionaire minimum tax, arguing that it could have negative economic consequences. However, Harris remains steadfast in her belief that the wealthy and big corporations should pay their fair share.

As the campaign trail continues, it will be interesting to see how Harris’s tax plans evolve and how they are received by the public. The outcome of the upcoming election will ultimately determine whether these proposals become a reality.